Hotel checking in downtown? Ocala group eyes old chamber site

Published: Tuesday, January 29, 2013 at 4:53 p.m.

Last Modified: Tuesday, January 29, 2013 at 4:53 p.m.

The Ocala City Council reached consensus at Tuesday's workshop meeting to give a group of local developers an exclusive six-month right to assess the feasibility of building a boutique hotel on the former Chamber of Commerce site downtown.

This will include discussions with the city about a conference center and possibly a parking garage. After six months, if the project appears viable, the group will bring a proposal for the council's acceptance or rejection.

Bryce Peek, of Ocala Development and president of the Ocala Downtown Business Alliance, asked the city for a binding letter of intent for the development group that, in addition to himself, includes his father, Realtor Albert Peek; and developers Kirk Boone and Sandy McBride.

Bryce Peek said the city's 2035 vision plan and the downtown master plan identified catalytic sites that could spur additional development in the downtown corridor. The former chamber site off Silver Springs Boulevard just east of the downtown square is one of those sites.

What the group will be exploring is developing an 82- to 100-bed boutique hotel with 10,000 square feet of retail, food and beverage space. Also included would be 10,000 square feet of conference space to be owned by the city.

He referred the council to the Iron Horse Hotel in Milwaukee as an example of a design concept.

"Obtaining financing for this type of development is difficult in today's economic climate," Peek said. He said a public/private partnership may be necessary to make the project happen.

Even so, he said, the group was not looking for any financial commitments at this time.

"We're not asking the city to put up anything other than the time," Peek said.

He said any of their findings during this exploratory period would be shared with the city.

Councilwoman Suzy Heinbockel asked if Scheinblum Hospitality Development had expressed any interest. Scheinblum is the Miami group that had aligned at the last moment with White Challis Redevelopment Company LLC, the Daytona Beach company that proposed building a commercial and residential development in downtown.

Marc Mondell, the city's executive director of community development, said he understood that Scheinblum was doing a market analysis, but said that the company had not asked anything of the city.

Heinbockel asked Peek if it would still work for his group if the city did not give it the exclusive right to look at the property but agreed not to negotiate with anyone else.

"We have already invested time and resources into the project," Peek said. "We would like to have some kind of agreement in place that we would have the first look at it."

Council President Mary Rich said others have had ample time to give the city a proposal for that site. These developers, she said, were "locally grown."

"They have come to us with something in mind," Rich said.

Councilman Jay Musleh agreed.

"We have been down the road with developers not from Ocala," Musleh said.

He said the city will not be transferring any property or giving any incentives at this time.

"They have come to us with a decent idea," Musleh said.

Councilman John McLeod asked how much a feasibility or market study would cost and Peek said it would be "tens of thousands" of dollars, plus considerable time. McLeod noted that both Boone and Albert Peek own property downtown and have a "vested interest" in making sure a project will work.

Councilman Daniel Owen asked if the city was legally obligated to put out a request for proposals and was told it is not legally required.

Mondell questioned what the city's obligation to the group would be at the end of six months. He also questioned what the city's commitment to parking and a conference center might include.

Bryce Peek said the group would negotiate the terms of a developer's agreement during the six-month process and would bring a proposal for a council vote "before anyone else comes through with another proposal."

As far as the conference center, he said they envisioned "co-management" of the center.

After Tuesday's meeting, Peek said, "We would see them owning it (the conference center.) It would be managed by a separate agreement."

He said parking will be an issue if a hotel and conference center are built. He said there have been discussions in the past about using tax dollars collected in the Community Development Area for a parking garage.

"I don't know how the city feels about that," Peek said. "Whatever way it goes, parking is definitely an issue that will have to be addressed."

The City Council directed staff to draft a letter of intent for the council to consider at its Feb. 19 meeting.

<p>The Ocala City Council reached consensus at Tuesday's workshop meeting to give a group of local developers an exclusive six-month right to assess the feasibility of building a boutique hotel on the former Chamber of Commerce site downtown.</p><p>This will include discussions with the city about a conference center and possibly a parking garage. After six months, if the project appears viable, the group will bring a proposal for the council's acceptance or rejection.</p><p>Bryce Peek, of Ocala Development and president of the Ocala Downtown Business Alliance, asked the city for a binding letter of intent for the development group that, in addition to himself, includes his father, Realtor Albert Peek; and developers Kirk Boone and Sandy McBride.</p><p>Bryce Peek said the city's 2035 vision plan and the downtown master plan identified catalytic sites that could spur additional development in the downtown corridor. The former chamber site off Silver Springs Boulevard just east of the downtown square is one of those sites.</p><p>What the group will be exploring is developing an 82- to 100-bed boutique hotel with 10,000 square feet of retail, food and beverage space. Also included would be 10,000 square feet of conference space to be owned by the city.</p><p>He referred the council to the Iron Horse Hotel in Milwaukee as an example of a design concept.</p><p>"Obtaining financing for this type of development is difficult in today's economic climate," Peek said. He said a public/private partnership may be necessary to make the project happen.</p><p>Even so, he said, the group was not looking for any financial commitments at this time.</p><p>"We're not asking the city to put up anything other than the time," Peek said.</p><p>He said any of their findings during this exploratory period would be shared with the city.</p><p>Councilwoman Suzy Heinbockel asked if Scheinblum Hospitality Development had expressed any interest. Scheinblum is the Miami group that had aligned at the last moment with White Challis Redevelopment Company LLC, the Daytona Beach company that proposed building a commercial and residential development in downtown.</p><p>Marc Mondell, the city's executive director of community development, said he understood that Scheinblum was doing a market analysis, but said that the company had not asked anything of the city.</p><p>Heinbockel asked Peek if it would still work for his group if the city did not give it the exclusive right to look at the property but agreed not to negotiate with anyone else.</p><p>"We have already invested time and resources into the project," Peek said. "We would like to have some kind of agreement in place that we would have the first look at it."</p><p>Council President Mary Rich said others have had ample time to give the city a proposal for that site. These developers, she said, were "locally grown."</p><p>"They have come to us with something in mind," Rich said.</p><p>Councilman Jay Musleh agreed.</p><p>"We have been down the road with developers not from Ocala," Musleh said.</p><p>He said the city will not be transferring any property or giving any incentives at this time.</p><p>"They have come to us with a decent idea," Musleh said.</p><p>Councilman John McLeod asked how much a feasibility or market study would cost and Peek said it would be "tens of thousands" of dollars, plus considerable time. McLeod noted that both Boone and Albert Peek own property downtown and have a "vested interest" in making sure a project will work.</p><p>Councilman Daniel Owen asked if the city was legally obligated to put out a request for proposals and was told it is not legally required.</p><p>Mondell questioned what the city's obligation to the group would be at the end of six months. He also questioned what the city's commitment to parking and a conference center might include.</p><p>Bryce Peek said the group would negotiate the terms of a developer's agreement during the six-month process and would bring a proposal for a council vote "before anyone else comes through with another proposal."</p><p>As far as the conference center, he said they envisioned "co-management" of the center.</p><p>After Tuesday's meeting, Peek said, "We would see them owning it (the conference center.) It would be managed by a separate agreement."</p><p>He said parking will be an issue if a hotel and conference center are built. He said there have been discussions in the past about using tax dollars collected in the Community Development Area for a parking garage.</p><p>"I don't know how the city feels about that," Peek said. "Whatever way it goes, parking is definitely an issue that will have to be addressed."</p><p>The City Council directed staff to draft a letter of intent for the council to consider at its Feb. 19 meeting.</p><p><i>Contact Susan Latham Carr at 867-4156 or susan.carr@starbanner.com.</i></p>